Automate director payrolls for the year, for the price of a beer
As is rather typical for KeyPay, KeyPay’s co-founders were at a pub in London drinking a few beers in August 2019 discussing the ins and outs of payroll. A part of this discussion involved the painful, mundane process of director payrolls. At the start of 2016, there were 3.3m sole traders in the UK, with 1.8 active limited companies (others were dormant/inactive), and 76% of all businesses did not employ anyone aside from the owner. These numbers, although a bit dated, suggest that roughly 1.37 million UK directors would need to process payroll and report to HMRC each year. These company directors work in all areas, and aren’t necessarily focused on managing their own books and reporting but instead, focusing on their area of expertise. In fact, roughly 60% of UK businesses outsource their payroll to a third party, leaving it to the experts to sort out the complexities on their behalf.
Although the director payroll process is quite simple, it’s not as lucrative for an accountant or outsourced payroll provider as running payroll for larger companies. The service is typically offered as a way to capture a new customer, with the intention that other service offerings may come. Alternatively, it’s just something that these firms offer because they feel they have to.
The crux of a director payroll involves two components: processing and reporting. Most existing software caters to director payrolls, but it’s still very much a manual process of opening up the software, finding the client file, creating a pay run, finalising the pay, generating a payslip, creating reports, emailing the director, submitting the FPS to HMRC...and if you multiply that process for each company director payroll, the time spent processing really adds up.
Additionally, the cost of software for infrequent director payroll processing can be staggering. There simply wasn’t one piece of software designed to cater to the needs of payroll bureaux managing multiple company director payrolls in an easy, cost effective and automated way.
Directorpays.co.uk powered by KeyPay has been built specifically to automate the entire director payroll process from end to end, with full customisation. With a one off setup (it takes about 5 minutes per company), the entire year of director payrolls is completely automated.
Why pay for an annual software license when you don’t have to?
The infrequency of company director payrolls means you can be paying for a desktop software annual license that you use a few times a year. But it makes no sense! With Director Pays, you pay £1 per company director when you process your clients’ payroll. Quarterly payroll for 1 director? That’s £4 a year (cheaper than your average pint in a London pub!), and a few minutes of setup. The PAYG system means that payroll bureaux can turn company director payrolls into one of the easiest, most cost effective parts of their business.
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